January 20, 2011 09:22 ET
MDN and SOQUEM Confirm High Gold Grades on the MCGold Project, Including:
– 1206-10-33: 7.81 g/t Au over 11.90 metres
– 1206-10-34: 1.89 g/t Au over 37.50 metres
– 1206-10-32: 1.18 g/t Au over 54.50 metres
– 1206-10-31: 0.90 g/t Au over 51.50 metres
– including 2.80 g/t Au over 10.00 metres
MONTREAL, QUEBEC–(Marketwire – Jan. 20, 2011) – MDN Inc. (“MDN”) (TSX:MDN), in partnership with SOQUEM Inc., announce the assay results for the first four drill holes (1206-10-31 to 1206-10-34) on its MCGold property near Chibougamau, Quebec.
These four holes were drilled to test quality and grade continuity compared to historical drilling that had been only partially sampled, possibly leading to an underestimation of the average grade for the deposit. The four holes tested two sections in the centre of the deposit, with holes 1206-10-31 and 32 drilled on Section 542125E and holes 1206-10-33 and 34 drilled on Section 542075E.
“We are pleased to have achieved our first objective for the MCGold deposit. The grade is in fact higher than in adjacent historical holes. Pockets of high-grade ore have been located and their distribution and grade might improve the economics of the deposit. Six additional holes located on two drilling sections are now being assayed, and the results will be integrated in a block model in the coming months,” stated Marc Boisvert, MDN’s Vice President, Exploration.
MDN’s June 2010 strategy of acquiring an interest of up to 50% in this property was based on the presence of a resource with Au-Cu porphyry-type deposit potential, which makes this a project to develop on the basis of a high-grade low-tonnage deposit model.
- 1206-10-32 (1.18 g/t Au over 54.5 m) was drilled between two historical, partially-sampled holes, 86-MOP2-07 (1.13 g/t Au over 47.1 m) and 86-MOP2 08 (0.61 g/t Au over 45.9 m).
- 1206-10-31 (0.89 g/t Au over 51.5 m) was drilled near surface, in the upward extension of intersection 1206-10-32 (1.18 g/t Au over 54.5 m). Intersection 1206-10-31 includes a richer interval grading 2.80 g/t Au over 10.0 m that coincides with a richer section of Hole 1206-10-32 grading 2.18 g/t Au /over 21 m.
- 1206-10-34 (1.89 g/t Au over 37.5 m) was drilled between two historical, partially-sampled holes, 86-MOP2-09 (1.26 g/t Au over 24.1 m) and 86-MOP2-10 (1.60 g/t Au over 53.75 m).
- 1206-10-33 (7.81 g/t Au over 11.9 m) is a section of a mineralized zone near the footwall contact of the deposit, near the contact of the porphyry intrusive and the ultramafic rocks. This intersection indicates potential for high-grade lenses within the mineralized envelope. The Hole 1206-10-33 intersection connects with the other high-grade intersections like holes 86-MOP2-09 (8.64 g/t Au over 0.6 m) and 87-MOP2-01 (10.46 g/t Au over 0.6 m).
The weighted average grade of the intersections is based on cross-section interpretation of the mineralized enveloped generally coinciding with a cutoff grade of 0.3 g/t Au.
|Hole #||Section (m||)||From (m||)||To (m||)||Length(1)(m||)||Au (g/t||)|
|Note 1: Core length and uncut grade|
Other high-grade intersections were obtained during this drilling program, and show continuity of these high grades on section. The four holes returned a total of six intersections with higher grade than 8 g/t Au over 1.5 m; these results correlate very well with the high values from historical drilling.
Table of high gold grade intersections:
|Hole #||Section (m||)||From (m||)||To (m||)||Length1(m||)||Au (g/t||)|
The holes drilled on Section 542125 E, namely holes 1206-10-31 (12.1 g/t Au over 1.5m), 86-MOP2-07 (12.4 g/t Au over 11.2 m), 1206-10-32 (8.2 g/t Au over 11.5m) and 86-MOP2-08 (5.2 g/t Au over 10.5m), show good continuity of these high gold grades on section, as do Section 542075 E holes 1206-10-34 (23.6 g/t Au over 1.5 m) and 86-MOP2-10 (24.5 g/t Au over 2.6 m). The interpretation is that the centre of the low-grade mineralized zones could be characterized by a high-grade gold ‘lead structure’. Testing of these high-grade structures along strike could lead to the discovery of mineralized zones along the deposit extensions.
Holes 1206-10-32 and 1206-10-34 confirm the grade of the mineralized zones and the continuity of the values within the intersection and show average values for the intersection samples similar to /or higher than the results for adjacent historical drilling.
The MCGold mineralization is associated with a large envelope of disseminated pyrite 200 m wide by 800 m long. The deposit remains open at depth and along strike. The gold mineralization is hosted in a quartz-feldspath porphyry intrusive, and also occurs in the rocks immediately adjacent to the intrusive.
The samples were analysed by fire assay at the Techni-lab Laboratory in Sainte-Germaine-de-Boulé, Quebec, which is certified according to international standards. A rigorous quality controls program implemented by SOQUEM included the insertion of blank or standard control samples every 50 samples, and systematic requests for resampling of the first pulp as well as of a second pulp prepared with the rejects for gold values higher than 0.5 g/t. The technical and scientific information contained in this press release has been reviewed by Marc Boisvert, geologist engineer and Vice President, Exploration, who acts as a qualified person in accordance with National Instrument 43-101.
SOQUEM INC. is a wholly owned subsidiary of the Société générale de financement du Québec (“SGF”). The mission of the SGF, an industrial and financial holding company, is to undertake economic development projects, particularly in the industrial sector, in cooperation with partners and in compliance with accepted profitability requirements and the economic development policies of the Quebec Government.
MDN Inc. (TSX:MDN) is a mining exploration and development company with exploration and development projects in Québec and Tanzania. MDN also remains active in the search for new business opportunities that can increase shareholder value. In addition to its 30% participating interest in the Tulawaka gold mine, MDN is the operator and owner of a majority interest in mineral licenses totalling 753 km2 in the vicinity of the Tulawaka mine. MDN Inc. also owns a 67.5% interest in Crevier Minerals Inc. which in turn owns an NI 43-101 niobium-tantalum resource in the Lac-Saint-Jean area of Quebec. MDN has an option to increase its equity participation in Crevier Minerals Inc. to a maximum of 87.5%. Additional information is available on MDN’s website at www.niobaymetals.com.
All statements in this release, other than statements of historical fact, that address events or developments that the Company expects to occur, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements are discussed in greater detail in the Company’s most recent Annual Information Form filed on SEDAR, which also provides additional general assumptions in connection with these statements. Investors and others who base themselves on the Company’s forward-looking statements should carefully consider the factors mentioned in the Annual Information Form as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.
- MDN Inc.
Serge Bureau, Ing.
President and Chief Executive Officer
514-866-6500, Ext. 221
Marc Boisvert, Ing.
Vice President, Exploration
514-866-6500, Ext. 227
Sun International Communications